Impact Healthcare REIT has raised £160m in its first share issue as it looks to enter the UK care homes market.
In stock market announcement Inpact said the money would be used to buy a seed portfolio of up to 58 residential care homes with 2,558 beds. It would then lease the homes on RPI-linked 20-year leases.
The issue price is 100 pence per ordinary share, with 146,172,360 shares issued pursuant to the placing and offer for subscription. Some 14,000,000 shares will be issued pursuant to the vendor issue. Targeted dividends will equate to a yield of 6%.
Rupert Barclay, non-executive chairman of Impact Healthcare REIT, said: “The proceeds will be invested in an existing diversified operating portfolio of residential care homes let to experienced operators for an initial term of 20 years.
“This provides the company with cash flows from admission and an excellent platform that will provide our new shareholders with attractive inflation-protected dividends as well as the potential for capital growth by delivering on the opportunities that exist both in the portfolio as well as in the wider market.”
Mahesh Patel, Impact Health Partners, said: “The highly-fragmented nature of the care home market creates multiple opportunities and the company is well placed to capitalise on our position as a well-resourced care home investor.”
Winterflood Investment Trusts is acting as sole bookrunner and financial adviser to the company in relation to the issue.
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